Converting black money to white is very common today. People use all illegal method to convert black money to white. This article is written to expose ways which people use to convert black money to white. I no way encourage any taxpayers or anyone to use any of the below methods.
10 Method to Convert Black Money to White
Bogus Loan Entry
Popular method people use to convert black money to white is by showing bogus loan entry. Modus operandi under this case will be people give black money to friend or relative and take a cheque from them. This is kind of bogus loan entry to convert black money to white.
In some cases people give repayment of this loan by giving back cheque. People doing this must understand that Income tax department is watching every transaction and tax payer have to prove genuineness of every transaction.
Also Read – Tax Avoidance and Black Money are common in India
Formulation of Trust & doing Charity
Another popular way used by people to convert black money to white is by formulating trust for social cause. They make executive bodies of own people in trust sometimes illiterate people like driver cook etc. They donate black money to this trust as charity to convert black money.
On paper it is charity but off the shelf it is conversion of black money to white.
Showing Income as Agriculture Income
Another popular way of converting black money in to white is by showing income as agriculture income. In order to show income as agriculture income you must possess land and it must be used for agriculture purpose like plantation, garden nursery etc.
However there are various conditions you need to satisfy in order to claim agriculture income.
Showing Cash Income from Profession
Another popular way to convert black money to white is by showing income in cash. Income from tuition, professional fees or commission is shown as cash by many tax payers it is nothing but converting black money in white.
Also Read – How Salaried Person can maximize tax saving?
Sale of personal belonging like Jewelry
Go to known jeweler and give him all black money you want to convert. He will give you cheque for the same amount. He will also give you purchase bill showing you sold your personal Jewelry to him. By this way your Black money is converted to white and you need not to pay capital gain tax even.
Converting Black money by Investment
Another method people use to convert black money to white is by making investment in cash.
People purchase insurance policy and pay premium in cash. For example if insurance premium is 50000 Rs/- payable quarterly, than people pay first premium via cheque and rest all premium in cash. This is most simple and popular way to convert black money in white.
Getting Black money as gift
Another popular way to convert black money to white is by getting gift from relative. Modus operandi is simple you have black money and your relative has the same amount of white money. Your relative issues cheque to you as gift and you will give your black money to him/her.
Depositing Black Money on name of Family members
Another popular method for converting black money to white is to open bank account on each and every individual family member. Deposit black money on the name of every family member to convert it in white.
By Real Estate
Real estate is sector where majority of black money is parked. People use real estate deals to convert black money to white. It is observed that people do fake real estate deal exchange money and cancel these deals due to non-payment of money.
By Declaring Black Money
Best method for converting black money to white as per me is by declaring this money to IT authorities and paying tax on this money to convert it in white.
Also Read – 10 Tax Evasion practice you should always avoid
Disclaimer –
I don’t recommend readers to follow any of these methods for black money conversion. This article is just for exposing loop holes of our system. So, that RBI and the government can take appropriate action by formulating strict rules to remove black money from India. I am against black money and black money generation ideas.
If you have any information about people holding a black money and trying to launder it. Please send email on blackmoneyinfo@incometax.gov.in This email id will be monitored by special cell and immediate action will be taken on information sent by you.
Let’s help government to fight against black money and tax evaders.
If I have missed any other methods which people use to convert their black money into white money I request you to share it in comment section.
Let’s fight against black money and corruption.
Black Money Removal Scheme – Rs 500 and Rs 100 notes scrapped – What Next
saurabh singh
I want to invest money, so will u tell me best invest planning & in which sector, organisation or company for best return.
sunil
thanks for the writing on black money white money conversions.
srinivasan m
@subrabh singh we have good idea for u r investment u r future.Contact us if you are intrested stylishsrinivasan@gmail.com
vijay kumar
if i invest black money in credit co-operative society for convert to white can i do it?
Raviraj Parekh
Money which you deposit in account account you need to pay tax or declare as your income so that it will be treated as white money.
renukaradhya K S
if i declared this much of black money what is the tax rate to pay the GOVT and is there punishment for me
Raviraj Parekh
Dear Renukar, You need to applicable tax on amount declared by you.If it is high amount more than 10 lac rate will be 30%.
Shwetha
Hello sir the best way to invest your money is with the charitable trust anyways we have a charity and you can invest your black money to our trust where you can get white money for further details contact 9620053919
Senthil
Hello Sir,
I am Senthil.
We do have contacts with Trust(Hindu / Christian) in Tamil Nadu. If you are interested to move your money to india. Please let us know.
Regards,
Senthil
Mail: senthil.se@gmail.com
Kumar
How much you can invest .we hav lot of govt projects in Karnataka State.
Arjun
No now black money it’s 45 percent get your facts right
aniruddha
in gujarat, the situation is somewhat different. The party who has black money has taken commission from the person whoo possess white. Black possessor takes 7% commission from the white possessor. i.e., a person who has Rs 100 white and gives it to black possessor, then black possessor takes his Rs. 100 white and gives him black Rs. 90 in return. What is the reason behind it? Why white possessor wants to turn it into black?
Raviraj Parekh
Probably to invest in real estate.
Sandeep
45% is along with surcharge
Jyotasna
People convert black money to white by taking cars in cash and then sell it out by taking cheque